India’s GDP soars 7.8% in Q1 | Hook Business News Wrap

India’s economy grew by 7.8% in the April–June quarter. That’s not only the highest in five quarters, it also reinforces India’s position as the fastest-growing large economy.

The stellar GDP number is driven mainly by a sharp surge in farm sector performance, which clocked 3.7% growth. Manufacturing also saw a marginal uptick at 7.7%.

Industrial Output grows

India’s industrial output growth jumped to a four-month high of 3.5% in July. That’s a sharp rise compared to just 1.5% in June 2025. The rebound was driven by surges in manufacturing, electricity, capital goods and consumer goods.

Manufacturing grew strongly, hitting a six-month high of 5.4%, while consumer durables expanded at a seven-month high of 7.7%. Experts believe industrial output could accelerate further in the months ahead. This comes as much-needed relief amid Trump’s tariff tantrums.

Trump’s additional tariff kicks in

This week, a 25% additional US tariff on Indian goods kicked in on August 27. With this, the overall duty on Indian goods shipped to the United States has risen to 50%.

This has a direct bearing on India’s export-driven sectors with large exposure to the US. These include apparel manufacturing, gems and jewellery, and shrimp exports.

As many of these industries are labour-intensive, stakeholders are also worried about potential job losses.

FIEO delegation meets FM

In fact, a delegation from the Federation of Indian Export Organisations (FIEO) met Finance Minister Nirmala Sitharaman on August 28 to share these concerns.

In the meeting, exporters stressed the need for swift and calibrated policy measures to ease the strain on the sector.

According to an FIEO statement, the Finance Minister reassured the delegation that the government stands firmly behind Indian exporters.

She also highlighted the importance of protecting workers’ livelihoods, urging industry leaders to reassure employees of job continuity despite global headwinds.

World’s second-largest economy

While India navigates the fresh challenges thrown up by Donald Trump, the broader outlook on the Indian economy remains intact.

EY has said that India may emerge as the world’s second-largest economy by 2038. The firm projects India’s economy to reach $34.2 trillion in purchasing power parity (PPP) terms over the next 13 years.

In its latest report, EY cited India’s demographics and high savings rate as key advantages compared with other large economies such as the US, China, Germany and Japan.

The report also stressed the role of structural reforms such as GST and digital transformation in moving India closer to its goal of becoming a developed nation.

Groww's billion-dollar IPO plan

Online investment and wealth management platform Groww is all set to go public. According to reports, market regulator SEBI has approved the company’s proposal for an IPO likely to raise up to $1 billion.

This public issue, expected to be one of the biggest fintech IPOs in the country to date, could value the Bengaluru-based company at up to $8 billion.

Groww had initially sought SEBI approval via the confidential pre-filing mechanism, and is expected to file its updated DRHP publicly in the coming weeks.

SMBC’s Yes Bank plan

Japanese banking giant Sumitomo Mitsui Banking Corp (SMBC) is set to inject ₹16,000 crore into Yes Bank. According to the Economic Times, the fund infusion is aimed at strengthening Yes Bank’s balance sheet.

The move follows the RBI’s approval for SMBC to acquire a 24.99% stake in the Indian lender.

Stock market: Tariff concerns

Indian equities ended the week in the red, as investors weighed the impact of Trump tariffs. However, the losses were not too sharp, reflecting market resilience. The Sensex slipped around 1.5% to close below 80,000. The Nifty also ended with a similar cut.